| Basis of Presentation and Summary of Significant Accounting Policies | 2.
Basis of Presentation and Summary of Significant Accounting Policies Basis
of presentation The
unaudited condensed consolidated interim financial statements presented herein, and discussed below, have been prepared in accordance
with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to
Form 10-Q and Article 8 of Regulation S-X. In accordance with those rules and regulations, certain information and footnote disclosures
normally included in comprehensive consolidated financial statements have been condensed or omitted. The condensed consolidated balance
sheets as of December 31, 2022 was derived from the audited consolidated financial statements at that date. These unaudited condensed
consolidated interim financial statements should be read in conjunction with the audited financial statements and notes thereto included
in Oncocyte’s Annual Report on Form 10-K for the year ended December 31, 2022. The unaudited condensed consolidated interim financial statements presented herein as of March 31, 2023 is not representative
of the full fiscal year or any future periods. Principles
of consolidation On
January 31, 2020 (the “Insight Merger Date”), Oncocyte
completed its acquisition of Insight Genetics, Inc. (“Insight”) through a merger with a newly incorporated wholly owned subsidiary
of Oncocyte (the “Insight Merger”) under the terms of an Agreement and Plan of Merger (the “Insight Merger Agreement”).
On the Insight Merger Date We
have reflected the operations of Razor as discontinued operations for all periods presented. See Note 16 for further information. Unless
otherwise noted, amounts and disclosures throughout these Notes to unaudited condensed consolidated interim financial statements relate
solely to continuing operations and exclude all discontinued operations. The
accompanying unaudited condensed consolidated interim financial statements, in the opinion of management, include all adjustments, consisting
only of normal recurring adjustments, necessary for a fair presentation of Oncocyte’s financial condition and results of operations.
The unaudited condensed consolidated results of operations are not necessarily indicative of the results to be expected for any other
interim period or for the entire year. All material intercompany accounts and transactions have been eliminated in consolidation. Use
of estimates The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, and contingent assets and liabilities, at the date of the unaudited condensed consolidated financial
statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates
estimates which are subject to significant judgment, including, but not limited to, valuation methods used, assumptions requiring the
use of judgment to prepare financial projections, timing of potential commercialization of acquired in-process intangible assets, applicable
discount rates, probabilities of the likelihood of multiple outcomes of certain events related to contingent consideration, comparable
companies or transactions, determination of fair value of the assets acquired and liabilities assumed including those relating to contingent
consideration, assumptions related to going concern assessments, allocation of direct and indirect expenses, useful lives associated
with long-lived intangible assets, key assumptions in operating and financing leases including incremental borrowing rates, loss contingencies,
valuation allowances related to deferred income taxes, and assumptions used to value debt and stock-based awards and other equity instruments.
Actual results may differ materially from those estimates. Similarly,
Oncocyte assessed certain accounting matters that generally require consideration of forecasted financial information. The accounting
matters assessed included, but were not limited to, Oncocyte’s equity investments, the carrying value of goodwill, going concern
assessment, acquired in-process intangible assets and other long-lived assets. Those assessments as well as other estimates referenced
above were made in the context of information reasonably available to Oncocyte. Business
combinations and fair value measurements Oncocyte
accounts for business combinations in accordance with ASC 805, which requires the purchase consideration transferred to be measured at
fair value on the acquisition date in accordance with ASC 820, Fair Value Measurement ●
Level 1 ●
Level 2 ●
Level 3 When
a part of the purchase consideration consists of shares of Oncocyte common stock, Oncocyte calculates the purchase price attributable
to those shares, a Level 1 security, by determining the fair value of those shares as of the acquisition date based on prices quoted
on the principal national securities exchange on which the shares traded. Oncocyte recognizes estimated fair values of the tangible assets
and identifiable intangible assets acquired, including in-process research and development, and liabilities assumed, including any contingent
consideration, as of the acquisition date. Goodwill is recognized as any amount of the fair value of the tangible and identifiable intangible
assets acquired and liabilities assumed in excess of the consideration transferred. ASC 805 precludes the recognition of an assembled
workforce as an asset, effectively subsuming any assembled workforce value into goodwill. In
determining fair value, Oncocyte utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable
inputs to the extent possible, and also considers counterparty credit risk in its assessment of fair value. For the periods presented,
Oncocyte has no financial assets or liabilities recorded at fair value on a recurring basis, except for money market funds and marketable
equity securities of Lineage and AgeX common stock held by Oncocyte described below. These assets are measured at fair value using the
period-end quoted market prices as a Level 1 input. Oncocyte also has certain contingent consideration liabilities which are carried
at fair value based on Level 3 inputs (see Note 3). The
following table presents the Company’s assets and liabilities, measured and recognized at fair value on a recurring basis, classified
under the appropriate level of the fair value hierarchy as of March 31, 2023 (in thousands): Schedule of Fair
Value Measurement of Financial Assets and Liabilities
As
of March 31, 2023
Total
carrying and estimated fair value Quated
prices in active markets (Level
1) Significant
other observable inputs (Level 2) Significant
other observable inputs (Level
3)
Assets:
Marketable
equity securities $ 553 $ 553 $ - $ -
Total $ 553 $ 553 $ - $ -
Liabilities:
Contingent
consideration liabilities $ 27,355 $ - $ - $ 27,355
Total $ 27,355 $ - $ - $ 27,355 The
following table presents the Company’s assets and liabilities, measured and recognized at fair value on a recurring basis, classified
under the appropriate level of the fair value hierarchy as of December 31, 2022 (in thousands):
As
of December 31, 2022
Total
carrying and estimated fair value Quated
prices in active markets (Level
1) Significant
other observable inputs (Level 2) Significant
other observable inputs (Level
3)
Assets:
Marketable
equity securities $ 433 $ 433 $ - $ -
Total $ 433 $ 433 $ - $ -
Liabilities:
Contingent
consideration liabilities $ 45,662 $ - $ - $ 45,662
Total $ 45,662 $ - $ - $ 45,662 The
carrying amounts of prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities approximate
fair values because of the short-term nature of these items. Cash,
cash equivalents, and restricted cash The
Company’s reconciliation of cash and cash equivalents, and restricted cash reported within the unaudited condensed consolidated
balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows were
as follows (in thousands): Schedule
of Cash and Cash Equivalents and Restricted Cash
March
31, December
31,
2023 2022
Cash
and cash equivalents $ 11,803 $ 19,993
Restricted
cash 1,700 1,700
Cash
from discontinuing operations - 1,510
Cash,
cash equivalents and restricted cash shown in the statements of cash flows $ 13,503 $ 23,203 Assets
Held for Sale and Discontinued Operations As
of March 31, 2023, the Company classified laboratory equipment previously presented in machinery and equipment as held for sale in current
assets, in the unaudited condensed consolidated balance sheet, as all the criteria of ASC subtopic 360-10, Property, Plant, and Equipment
(“ASC 360-10”) have been met and the transaction was qualified as assets held for sale. During the three months ended March 31, 2023, the Company entered into
various agreements to sell laboratory equipment for an aggregate amount of $ 0.6 0.4 1.3 0.2 Assets
and liabilities are classified as held for sale when all of the following criteria for a plan of sale have been met: (1) management,
having the authority to approve the action, commits to a plan to sell the assets; (2) the assets are available for immediate sale, in
their present condition, subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate
a buyer and other actions required to complete the plan to sell the assets have been initiated; (4) the sale of the assets is probable
and is expected to be completed within one year; (5) the assets are being actively marketed for a price that is reasonable in relation
to their current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the
plan will be made or the plan will be withdrawn. When all of these criteria have been met, the assets and liabilities are classified
as held for sale in the unaudited condensed consolidated balance sheet. Assets classified as held for sale are reported at the lower
of their carrying value or fair value less costs to sell. Depreciation and amortization of assets ceases upon designation as held for
sale. Discontinued
operations comprise activities that were disposed of or discontinued at the end of the period, represent a separate major line of business
that can be clearly distinguished for operational and financial reporting purposes and represent a strategic business shift having a
major effect on the Company’s operations and financial results according to Accounting Standard Codification (“ASC”)
Topic 205, Presentation of Financial Statements Additional
details surrounding the Company’s assets and liabilities held for sale and discontinued operations are included in Note 16. Goodwill
and intangible assets In
accordance with ASC 350, Intangibles – Goodwill and Other Goodwill
represents the excess of the purchase price over the fair value of net identifiable assets and liabilities. Goodwill, similar to IPR&D,
is not amortized but is tested for impairment at least annually, or if circumstances indicate its value may no longer be recoverable.
Qualitative factors considered in this assessment include industry and market conditions, overall financial performance, and other relevant
events and factors affecting Oncocyte’s business. Based on the qualitative assessment, if it is determined that the fair value
of goodwill is more likely than not to be less than its carrying amount, the fair value of a reporting unit will be calculated and compared
with its carrying amount and an impairment charge will be recognized for the amount that the carrying value exceeds the fair value. Oncocyte
continues to operate in one segment and considered to be the sole reporting unit and, therefore, goodwill is tested for impairment at
the enterprise level. Oncocyte
does not have intangible assets with indefinite useful lives other than goodwill and the acquired IPR&D discussed in Notes 3 and
4. As of December 31, 2022, goodwill has been fully impaired. As of March 31, 2023, acquired IPR&D have been impaired. Long-lived
intangible assets Long-lived
intangible assets, consisting primarily of acquired customer relationships, are stated at acquired cost, less accumulated amortization.
Amortization expense is computed using the straight-line method over the estimated useful life of 5 Contingent
consideration liabilities Certain
of Oncocyte’s asset and business acquisitions involve the potential for future payment of consideration to third-parties and former
selling shareholders in amounts determined as a percentage of future net revenues generated, or upon attainment of revenue milestones,
from Pharma Services or laboratory tests, as applicable, or annual minimum royalties to certain licensors, as provided in the applicable
agreements. The fair value of such liabilities is determined using unobservable inputs. These inputs include the estimated amount and
timing of projected cash flows and the risk-adjusted discount rate used to present value the cash flows (see Notes 3 and 4). These obligations
are referred to as contingent consideration. ASC
805 requires that contingent consideration be estimated and recorded at fair value as of the acquisition date as part of the total consideration
transferred. Contingent consideration is an obligation of the acquirer to transfer additional assets or equity interests to the selling
shareholders in the future if certain future events occur or conditions are met, such as the attainment of product development milestones.
Contingent consideration also includes additional future payments to selling shareholders based on achievement of components of earnings,
such as “earn-out” provisions or percentage of future revenues, including royalties paid to the selling shareholders based
on a percentage of certain revenues generated. The
fair value of contingent consideration after the acquisition date is reassessed by Oncocyte as changes in circumstances and conditions
occur, with the subsequent change in fair value recorded in the condensed consolidated statements of operations. Changes in key assumptions
can materially affect the estimated fair value of contingent consideration liabilities and, accordingly, the resulting gain or loss that
Oncocyte records in its unaudited condensed consolidated interim financial statements. See Notes 3 and 4 for a full discussion of these
liabilities. Investments
in capital stock of privately held companies Oncocyte
evaluates whether investments held in common stock of other companies require consolidation of the company under, first, the variable
interest entity (“VIE”) model, and then under the voting interest model in accordance with accounting guidance for consolidations
under Accounting Standards Codification (“ASC”) 810-10. If consolidation of the entity is not required under either the VIE
model or the voting interest model, Oncocyte determines whether the equity method of accounting should be applied in accordance with
ASC 323, Investments – Equity Method and Joint Ventures Oncocyte
initially records equity method investments at fair value on the date of the acquisition with subsequent adjustments to the investment
balance based on Oncocyte’s pro rata share of earnings or losses from the investment. From
February 24, 2021, the date of Oncocyte’s acquisition of the remaining interests in Razor, through February 16, 2023 the date of
its disposition, Razor entity’s financial statements have been consolidated with Oncocyte. See Notes 3, 4, and 16 for additional information. Impairment
of long-lived assets Oncocyte
assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that such assets might be impaired
and the carrying value may not be recoverable. Oncocyte’s long-lived assets consist primarily of intangible assets, right-of-use
assets for operating leases, customer relationships, and machinery and equipment. If events or changes in circumstances indicate that
the carrying amount of an asset may not be recoverable and the expected undiscounted future cash flows attributable to the asset are
less than the carrying amount of the asset, an impairment loss, equal to the excess of the carrying value of the asset over its fair
value, is recorded. See Notes 3, 4, and 16 for additional information with respect to impairments of long-lived assets. See Note 16 for
disclosure of machinery and equipment impairment. Revenue
recognition Pursuant
to ASC 606, revenues are recognized when control of services performed is transferred to customers, in an amount that reflects the consideration
Oncocyte expects to be entitled to in exchange for those services. ASC 606 provides for a five-step model that includes: (i)
identifying the contract with a customer, (ii)
identifying the performance obligations in the contract, (iii)
determining the transaction price, (iv)
allocating the transaction price to the performance obligations, and (v)
recognizing revenue when, or as, an entity satisfies a performance obligation. Oncocyte
determines transaction prices based on the amount of consideration we expect to receive for transferring the promised goods or services
in the contract. Consideration may be fixed, variable, or a combination of both. The Company considers any constraints on the variable
consideration and includes in the transaction price variable consideration to the extent it is deemed probable that a significant reversal
in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently
resolved. DetermaRx
testing revenue Prior
to the Razor Sale Transaction, Oncocyte generated revenue from performing DetermaRx tests on clinical samples through orders received
from physicians, hospitals, and other healthcare providers. In determining whether all the revenue recognition criteria (i) through (v)
above are met with respect to DetermaRx tests, each test result is considered a single performance obligation and is generally considered
complete when the test result is delivered or made available to the prescribing physician electronically, and, as such, there are no
shipping or handling fees incurred by Oncocyte or billed to customers. Although Oncocyte has billed a list price for all tests ordered
and completed for all payer types, Oncocyte considers constraints on the variable consideration when recognizing revenue for DetermaRx.
Because DetermaRx is a novel test and there are no current reimbursement arrangements with third-party payers other than Medicare, the
transaction price represents variable consideration. Application of the constraint for variable consideration is an area that requires
significant judgment. For all payers other than Medicare, Oncocyte must consider the novelty of the test, the uncertainty of receiving
payment, or being subject to claims for a refund, from payers with whom it does not have a sufficient payment collection history or contractual
reimbursement agreements. Accordingly, for those payers, Oncocyte has recognized revenue upon payment because it has had insufficient
history to reliably estimate payment patterns or has had contractual reimbursement arrangements, or both, in place. As
of March 31, 2023, Oncocyte had accounts receivable of $ 1.8 We
maintain an allowance for doubtful accounts at an amount we estimate to be sufficient to provide adequate protection against losses
resulting from extending credit to our customers. We base this allowance, in the aggregate, on historical collection experience, age
of receivables and general economic conditions. Our bad debts have not been material and have been within management expectations.
During the first quarter of 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial
Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 0.2 Pharma
services revenue Revenues
recognized include Pharma Services performed by Oncocyte’s Insight and Chronix subsidiaries for its pharmaceutical customers, including
testing for biomarker discovery, assay design and development, clinical trial support, and a broad spectrum of biomarker tests. These
Pharma Services are generally performed under individual scope of work (“SOW”) arrangements or license agreements (together
with SOW the “Pharma Services Agreements”) with specific deliverables defined by the customer. Pharma Services are performed
on a (i) time and materials basis or (ii) per test completed basis. Upon completion of the service to the customer in accordance with
a Pharma Services Agreement, Oncocyte has the right to bill the customer for the agreed upon price (either on a per test or per deliverable
basis) and recognizes Pharma Service revenue at that time. Insight identifies each sale of its Pharma Service offering as a single performance
obligation. Chronix identifies the processing of test samples as a separate performance obligation (considered a series) within license
agreements with customers. Completion
of the service and satisfaction of the performance obligation is typically evidenced by access to the report or test made available to
the customer or any other form or applicable manner of delivery defined in the Pharma Services Agreements. However, for certain SOWs
under which work is performed pursuant to the customer’s highly customized specifications, Oncocyte has the enforceable right to
bill the customer for work completed, rather than upon completion of the SOW. For those SOWs, Oncocyte recognizes revenue over a period
during which the work is performed using a formula that accounts for expended efforts, generally measured in labor hours, as a percentage
of total estimated efforts for the completion of the SOW. As performance obligations are satisfied under the Pharma Services Agreements,
any amounts earned as revenue and billed to the customer are included in accounts receivable. Any revenues earned but not yet billed
to the customer as of the date of Oncocyte’s condensed consolidated financial statements are recorded as contract assets and are
included in prepaids and other current assets as of the financial statement date. Amounts recorded in contract assets are reclassified
to accounts receivable in Oncocyte’s condensed consolidated financial statements when the customer is invoiced according to the
billing schedule in the contract. Oncocyte
establishes an allowance for doubtful accounts based on the evaluation of the collectability of its Pharma Services accounts receivables
after considering a variety of factors, including the length of time receivables are past due, significant events that may impair the
customer’s ability to pay, such as a bankruptcy filing or deterioration in the customer’s operating results or financial
position, reasonable and supportable forecast that affect the collectability of the reported amount, and historical experience. If circumstances
related to customers change, estimates of the recoverability of receivables would be further adjusted. Oncocyte continuously monitors
collections and payments from customers and maintains a provision for estimated credit losses and uncollectible accounts, if any, based
upon its historical experience and any specific customer collection issues that have been identified. Amounts determined to be uncollectible
are written off against the allowance for doubtful accounts. As of March 31, 2023, Oncocyte has not recorded any losses or allowance
for doubtful accounts on its account receivables from Pharma Services. As
of March 31, 2023, Oncocyte had accounts receivable from Pharma Services customers of $ 0.2 0.3 Licensing
revenue Revenues
recognized includes licensing revenue derived from agreements with customers for exclusive rights to market Oncocyte’s proprietary
testing technology. Under the agreements, Oncocyte grants exclusive rights to certain trademarks and technology of Oncocyte for the purpose
of marketing Oncocyte’s tests within a defined geographic territory. A license agreement may specify milestone deliverables or
performance obligations, for which Oncocyte recognizes revenue when its licensee confirms the completion of Oncocyte’s performance
obligation. A licensing agreement may also include ongoing sales support from Oncocyte and typically includes non-refundable licensing
fees and per-test Pharma Services revenues discussed above, for which Oncocyte treats the licensing of the technology, trademarks, and
ongoing support as a single performance obligation satisfied by the passage of time over the term of the agreement. Cost
of revenues Cost
of revenues generally consists of cost of materials, direct labor including benefits, bonus and stock-based compensation, equipment and
infrastructure expenses, clinical sample related costs associated with performing DetermaRx tests and Pharma Services, providing deliverables
according to our licensing agreements, license fees due to third parties, and amortization of acquired intangible assets such as the
Razor asset and customer relationship intangible assets. Infrastructure expenses include depreciation of laboratory equipment, allocated
rent costs, leasehold improvements, and allocated information technology costs for operations at Oncocyte’s CLIA laboratories in
California and Tennessee. Costs associated with generating the revenues are recorded as the tests or services are performed regardless
of whether revenue was recognized. Royalties or revenue share payments for licensed technology calculated as a percentage of revenues
generated using the associated technology are recorded as expenses at the time the related revenues are recognized. Research
and development expenses Research
and development expenses are comprised of costs incurred to develop technology, which include salaries and benefits (including stock-based
compensation), laboratory expenses (including reagents and supplies used in research and development laboratory work), infrastructure
expenses (including allocated facility occupancy costs), and contract services and other outside costs. Indirect research and development
expenses are allocated primarily based on headcount, as applicable, and include rent and utilities, common area maintenance, telecommunications,
property taxes, and insurance. Research and development costs are expensed as incurred. Sales
and marketing expenses Sales
and marketing expenses consist primarily of personnel costs and related benefits, including stock-based compensation, trade show expenses,
branding and positioning expenses, and consulting fees. Sales and marketing expenses also include indirect expenses for applicable overhead
allocated based on headcount, and include allocated costs for rent and utilities, common area maintenance, telecommunications, property
taxes, and insurance. General
and administrative expenses General
and administrative expenses consist primarily of compensation and related benefits (including stock-based compensation) for executive
and corporate personnel, professional and consulting fees, rent and utilities, common area maintenance, telecommunications, property
taxes, and insurance. Net
income (loss) per common share Basic
loss per share is computed by dividing the net loss applicable to common stockholders after deducting cumulative unpaid dividends and
accretion of the preferred stock, by the weighted average number of shares of common stock outstanding during the year. Diluted loss
per share is computed by dividing the net loss applicable to common stockholders after deducting cumulative unpaid dividends and accretion
of the preferred stock, by the weighted average number of common shares outstanding plus the number of additional common shares that
would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method or the if-converted
method, or the two-class method for participating securities, whichever is more dilutive. Potential common shares are excluded from the
computation if their effect is antidilutive. The
following table presents the calculation of basic and diluted loss per share of common stock (in thousands): Schedule
of Common Stock Computation of Diluted Net Loss Per Share of Common Stock
2023 2022
Three
Months Ended
March
31,
2023 2022
Numerator:
Net
income (loss) from continuing operations attributable to Oncocyte Corporation $ 5,959 $ (3,413 )
Accretion
of Series A redeemable convertible preferred stock (230 ) -
Undistributed
earnings from continuing operations allocated to participating securities (830 ) -
Net
income (loss) from continuing operations attributable to common stockholders - basic 4,899 (3,413 )
Add:
undistributed earnings from continuing operations allocated to participating securities 830 -
Reallocation
of undistributed earnings from continuing operations to participating securities (829 ) -
Net
income (loss) from continuing operations attributable to common stockholders - diluted 4,900 (3,413 )
Net
loss from discontinued operations attributable to Oncocyte Corporation (2,926 ) (6,878 )
Undistributed
losses from discontinued operations allocated to participating securities 424 -
Net
loss from discontinued operations attributable to common stockholders - basic (2,502 ) (6,878 )
Add:
undistributed losses from discontinued operations allocated to participating securities (424 ) -
Reallocation
of undistributed losses from discontinued operations to participating securities 424 -
Net
loss from discontinued operations attributable to common stockholders - diluted (2,502 ) (6,878 )
Net
income (loss) attributable to common stockholders - basic 2,397 (10,291 )
Add:
undistributed earnings allocated to participating securities 406 -
Reallocation
of undistributed earnings to participating securities (405 ) -
Net
income (loss) attributable to common stockholders - diluted $ 2,398 $ (10,291 )
Denominator:
Weighted
average common shares outstanding - basic 119,150 92,243
Dilutive
potential common shares:
Restricted
stock units 103 -
Weighted
average common shares outstanding - diluted 119,253 92,243
Net
income (loss) from continuing operations attributable to common stockholders per share - basic $ 0.04 $ (0.04 )
Net
loss from discontinued operations attributable to common stockholders per share - basic $ (0.02 ) $ (0.07 )
Net
income (loss) attributable to common stockholders per share - basic $ 0.02 $ (0.11 )
Net
income (loss) from continuing operations attributable to common stockholders per share - diluted $ 0.04 $ (0.04 )
Net
loss from discontinuing operations attributable to common stockholders per share - diluted $ (0.02 ) $ (0.07 )
Net
income (loss) attributable to common stockholders per share - diluted $ 0.02 $ (0.11 )
Anti-dilutive
potential common shares excluded from the computation of diluted net loss per common share:
Stock
options 12,352 7,125
RSUs 216 85
Warrants 250 1,789
Total 12,818 8,984 Leases Oncocyte
accounts for leases in accordance with ASC 842, Leases During
prior years, Oncocyte entered into various operating leases and an embedded operating lease in accordance with ASC 842 discussed in Note
10. Oncocyte’s accounting for financing leases remained substantially unchanged. Accounting
for Lineage and AgeX shares of common stock Oncocyte
accounts for the shares of Lineage and AgeX common stock it holds as marketable equity securities in accordance with ASC 320-10-25, Investments
– Debt and Equity Securities Financial Instruments–Overall:
Recognition and Measurement of Financial Assets and Financial Liabilities As
of March 31, 2023 and December 31, 2022, Oncocyte held 353,264 35,326 0.5 23,000 Recent
accounting pronouncements In
June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13,
Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In
October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities
from Contracts with Customers, COVID-19
impact and related risks The
Company is subject to risks and uncertainties as a result of the recent COVID-19 pandemic. The extent of the impact of the COVID-19
pandemic on the Company’s business is highly uncertain and difficult to predict, as the responses that the Company, other
businesses and governments are taking continue to evolve. Furthermore, capital markets and economies worldwide have also been
negatively impacted by the COVID-19 pandemic, and it is possible that it co |
